Bank of Thailand approves virtual banking licenses for three groups

The Minister of Finance, following recommendations from the Bank of Thailand (BOT), has granted approval to three applicants to set up virtual banks under the February 2024 licensing framework.

Successful Applicants:

1. ACM Holding Company Limited
2. A consortium including Krung Thai Bank, Advanced Info Service (AIS), and PTT Oil and Retail
3. A consortium including SCB X, WeTechnology, and Korea-based KakaoBank

• Selection Criteria: Applications were evaluated based on business plans, technological capabilities, and their ability to enhance financial inclusion, especially for underserved retail and SME customers.
• Intent: The initiative aims to foster innovation, healthy competition, and improved financial access and service quality without compromising financial system stability.
• Next Steps: Approved applicants must set up public limited companies and pass a readiness assessment by the BOT. They must commence operations within one year of the approval date.

The applications were assessed focusing on qualifications, strategies, and abilities to deliver innovative or efficient digital financial services. The goal is to meet diverse customer needs, especially unserved and underserved retail and SME sectors, enhance customer experience, and drive financial innovation while promoting healthy competition in quality and pricing.

The BOT prioritized transparency and fairness, thoroughly reviewed all information for compliance, and established protocols to prevent conflicts of interest during the process.

Source: Announcement of a List of Successful Applicants Approved by the Minister of Finance to Establish a Virtual Bank